Farm Subsidies......expand or GET OUT???

[Bossfarmer]

Given the fact that subsidy goes straight to the bottom line(net profit) how does everyone plan to replace this? im not asking can you "survive" without it, simply how will you replace it? or will you just accept that you will make less money? given the fact the general populations minimum wage grows over time this may not be a good time to reduce profits, the fact this will affect every single farming business with land it could be worth discussion

After much thought the plan here is to increase cow numbers up from 200-300 over 5 years by swapping a char bull for a sim to breed a lot more replacements, push calves harder to sell younger, continue to improve pastures and i have a agreed to rent some grazing land and shed off a neighbour also, he is dispersing, ive also agreed to do all the arable work on his land for him at contractor rates and a straw for dung swap is the plan, 150 acres, this income is to help with machinery payments on my own farm, this may or may not work we shall see

 

[Derrick Hughes]

Be glad when they gone
It's strange some of the historical biggest claimers, hill sheep men are saying the same

 

[Adeptandy]

The problem with that is if everyone in your sector does the same it will oversupply and reduce farm gate price, then the cycle continues.

 

[jh.]

Can you stand going up another gear on the hamster wheel with the current machinery and staff? If it's family labour doing it mostly for the joy , then fair enough but if your going to need outside staff and more kit , you might not be that much better off

 

[Spud]

Given the fact that subsidy goes straight to the bottom line(net profit) how does everyone plan to replace this? im not asking can you "survive" without it, simply how will you replace it? or will you just accept that you will make less money? given the fact the general populations minimum wage grows over time this may not be a good time to reduce profits, the fact this will affect every single farming business with land it could be worth discussion

After much thought the plan here is to increase cow numbers up from 200-300 over 5 years by swapping a char bull for a sim to breed a lot more replacements, push calves harder to sell younger, continue to improve pastures and i have a agreed to rent some grazing land and shed off a neighbour also, he is dispersing, ive also agreed to do all the arable work on his land for him at contractor rates and a straw for dung swap is the plan, 150 acres, this income is to help with machinery payments on my own farm, this may or may not work we shall see

If I drill twice as many acres, my drill wears out twice as quick. Run faster tire out faster.

Mexican fisherman is the way forward

 

[onesiedale]

Given the fact that subsidy goes straight to the bottom line(net profit) how does everyone plan to replace this? im not asking can you "survive" without it, simply how will you replace it? or will you just accept that you will make less money? given the fact the general populations minimum wage grows over time this may not be a good time to reduce profits, the fact this will affect every single farming business with land it could be worth discussion

After much thought the plan here is to increase cow numbers up from 200-300 over 5 years by swapping a char bull for a sim to breed a lot more replacements, push calves harder to sell younger, continue to improve pastures and i have a agreed to rent some grazing land and shed off a neighbour also, he is dispersing, ive also agreed to do all the arable work on his land for him at contractor rates and a straw for dung swap is the plan, 150 acres, this income is to help with machinery payments on my own farm, this may or may not work we shall see

Looks like your neighbour has the answer!

Meanwhile;
Reduce costs
Reduce marginal production/reduce output.
Concentrate on high margin output.

No point in running faster to stand still.
There has got to be a massive paradigm shift towards land management in future. Technology doesn't always provide the most profitable answers.
Sometimes dog and stick give the best margin.

 

[PSQ]

Good luck with that @Bossfarmer…

Neil Unger (Writing in the Farming News years ago):
"Australian farmers were told [in the 1980's] to 'get big, or get out'.
Those that followed the banks advice did both..."

 

[ollie989898]

Rent out, put money in back pocket. Profit.

 

[topground]

Asking for a friend close to Bristol Airport thinking of diversifying, how many cars can you park to the acre?

 

[Samcowman]

Being new tenants we don’t claim bps but do claim stewardship and will claim sfi when/if we are eventually not excluded from the scheme.
@Bossfarmer if you are already working massive hours as you have said previously will it be viable to take on more without incurring extra costs?

 

[ollie989898]

Asking for a friend close to Bristol Airport thinking of diversifying, how many cars can you park to the acre?

A lot. That is a major money spinner. Cars in all directions around the place. Just not so clever when it's wet getting them out!

 

[Drillman]

Subsidies are a bonus, we are only a small farm but I’ve tried to make subs a very small part of our overall income. the way things are changing is something I been looking into and realise we can tweak our farming system for agronomic benefit and get paid as well. I don’t think doing nothing is an option. Likewise the grant system for machinery is geared towards these changes so may as well take advantage while there available.

 

[Billboy1]

if you haven't already prepared for the loss of bps your a bit late to the party . failure to prepare = prepare to fail

 

[PI Stsker]

Economy of scale isn’t always the answer. Sometimes streamlining what you already have and increasing the margin already there is a better option all round, rather than running faster to be in the same position.

 

[lloyd]

Be glad when they gone
It's strange some of the historical biggest claimers, hill sheep men are saying the same

Apologies if i'm wrong but have you not been renting yours out
for a number of years ?

 

[PSQ]

Asking for a friend close to Bristol Airport thinking of diversifying, how many cars can you park to the acre?

At £15 a day you only need one car for one month per acre…

…to offset the average profit from normal farming operations in a ‘good year’.

 

[lloyd]

At £15 a day you only need one car for one month per acre…

…to offset the average profit from normal farming operations in a ‘good year’.

I'm glad you put 'good year'.

 

[Still Farming]

Asking for a friend close to Bristol Airport thinking of diversifying, how many cars can you park to the acre?

Up or side ways??

 

[warksfarmer]

Whoever has voted to diversify you do realise your doing the governments job for them.

If they want cheap food then it’s their job to subsidise it. Not the farmers.

Diversifying to carry on farming is nothing short of stupidity.

 

[tepapa]

If we're to beat all this climate bollox aimed at farmers and increased cost in the production of food, I see the only thing farmers can do is seriously cut production.

Less fuel use, less fertilizer = less carbon. Less food produced = increased sale prices.

The crux is farmers will have to restructure their businesses to accommodate. This may mean selling the new fendt and replacing it with an older Massey, be seen to give up rented ground that isn't paying for itself. Dare I say it but even consider more environmental options on poorer ground.

But upping production to try an maintain profit levels is a road to know where, just to be screwed over by supermarkets.